TLE 4TH Quarter Reviewer

• Notes Receivable - claims against debtors or customers arising from the sale of goods and rendering service to customers evidence by unknown.
• Liquidity - arrangement of assets
• Current Assets - consumable assets that are expected to be used up or converted into cash within one year.
• Non-current Assets - non-consumable. Long-term resources that will use by the business repeatedly over a period of time.
• Current Liabilities - long term debts owned by the business.
• Accounts payable - amounts due arising from the sale of goods rendering of service to customers on account.
• Notes payable - a amounts due arising from the sale of goods rendering of services to customers evidence by a note.
• Salaries payable - paid salaries owed to the employees.
• Tax payable - unpaid taxes owed to the government.
• Mortgage payable - long term debts by collateral
• Debit - left side of an account
• Credit - right side of an account
• Assets, Drawings, Expenses - accounts that the increasing side is debit.
• Liabilities, Capital, Income - accounts that the increasing side is credit
• Chart of accounts - list of all the accounts you must use to record financial transactions in your general ledger
• Ledger - book of final entry
• Depreciable - losing value over time
• Non-depreciable - not losing value over time
• Accounting - art of recording, classifying, summarizing, interpreting insignificant manner
• Public accounting - offers accounting to general public
• Private accounting - offers accounting in related services to company
• Classifying - is the sorting of information in orderly manner
• Interpreting - involves the analyzes express in terms of percentage and ratios.
• Bookkeeping - is the recording of business data in prescribed manner
• Recording - to make records of all the transactions
• Summarizing - summarizing the data after each accounting period
• Business - people with varied skills
• Sole proprietorship - owned by a single individual, needs to be registered in DTI
• Partnership - owned by 2-5 people
• Corporation - owned by 5 to 15, stocks or stockholder
• Cooperative - people with common bond of interest, owned by 15 to 30 people
• Assets - are the things of value owned by the owner
• Liability - debts, obligation, creditors equity/creditors right
• Capital - investment/owner's equity
• Revenue - in flows of cash/income of the business
• Expenses - cost incurred to produce revenue
• Merchandising company - engage in buying and selling goods
• General journal - book of original entry
• Posting - transferring information from the journal to general ledger accounts
• Cash - any medium of exchange that bank will accept at pace value